Ordinance 775 added Chapter 5.88.140 to the Cathedral City Municipal Code. The Code requires that a Medical Cannabis Task Force be established. The City Manager shall designate no less than nine members and no greater than 15 members to the Medical Cannabis Task Force. The Task Force shall consist of at least one representative from the following groups:

Cathedral City Police Department;

Cathedral City Fire Department;

Cathedral City Planning Department;

Cathedral City Mayor’s Office;

A medicalcannabis patient;

An owner of a dispensary;

An owner of a cultivation site;

An owner of a manufacturing site; and

An interested member of the Cathedral City community, who must be a resident.

The City Manager shall serve as the Chairman of the Task Force.

The task force is not appointed by the City Council, the City Manager designates the members. The Task Force does not fall under the Maddy Act nor the Brown Act.

The following is a list of the members of the Medical Cannabis Task Force:

The City Council approved an Interim Urgency Ordinance imposing a temporary moratorium on the approval of new applications for dispensaries on November 23, 2016. Below is information related to the Moratorium:

The City Council approved an Interim Urgency Ordinance extending the Temporary Moratorium on the approval of new application for dispensaries for a period of six months. Below is the adopted Ordinance:

Call the Police Department at 760-770-0304 to schedule a Live Scan appointment for a dispensary/cultivation permit to begin the background process.

Cannabis and Marijuana Tax

On November 4, 2014, the Cathedral City voters approved Measure N, which approved a new tax at a rate of up to fifteen cents per each dollar of proceeds or fractional part thereof on marijuana collectives and dispensaries operating in the City of Cathedral City.

A Marijuana (or cannabis) collective (dispensary) means any activity regulated or permitted by Chapter 9.108 of the Cathedral City Municipal Code, or California Health and Safety Code sections 11362.5, et seq., as may be amended from time to time, or any other activity or business that involves planting, cultivating, harvesting, transporting, dispensing, delivering, providing, manufacturing, compounding, converting, processing, preparing, storing, packaging, or testing any part of the marijuana plant for medical purposes.

Every person engaged in operating or otherwise conducting a cannabis or marijuana collective and/or dispensary (collectively referred to herein as "collective"), and regardless of whether such collective has a permit pursuant to Chapter 9.108 of the City of Cathedral City's Municipal Code, establishes a maximum cannabis and marijuana tax of 15 cents for each $1.00 of proceeds or fractional part thereof.

Proceeds means gross receipts of any kind, including without limitation, membership dues; the value of in-kind contributions; reimbursements provided by members regardless of form; any payments made; and anything else of value obtained by a cannabis or marijuana collective.

Below is the Ordinance and Resolutions related to Cannabis and Marijuana Tax

On November 8, 2016, Cathedral City Voters approved Measure P, which amends the existing Medical Cannabis Business Tax to impose the Tax on all cannabis businesses (Medical and Non-Medical) and to provide different tax calculations for cultivating, manufacturing and dispensing cannabis.

Ordinance 787 (Measure P) amends Chapter 3. 48 of the Cathedral City Municipal Code. This chapter is known as the " Cannabis Tax" and is enacted as a business license tax pursuant to Government Code section 37101 solely to raise revenue for the general governmental purposes of the city and not for purposes of regulation or raising revenues for regulatory purposes. All of the proceeds from the tax imposed by this chapter shall be placed in the city' s general fund and used for the usual current expenses of the city. This chapter is intended to impose a tax on lawful cannabis businesses operating in the city, consistent with the city' s authority in Government Code section 37101. Cannabis businesses operating under California' s medical marijuana laws ( Health and Safety Code sections 11362. 7 – 11362. 83; Business and Professions Code section 19300 - 19360) are subject to the tax imposed by this chapter. At such time as recreational or other non- medical use or consumption of cannabis is legalized or decriminalized in California, this tax shall apply to cannabis businesses engaged in commercial cannabis activity for non- medical uses.

Every cannabis business operating in the city, regardless of whether such cannabis business has a license pursuant to Chapter 5. 88 of this code or a permit pursuant to Chapter 9. 108 of the Municipal Code, shall pay a cannabis tax in the following amounts:

A. Fifteen cents for each one dollar of gross receipts or fractional part thereof received by a dispensary or by any other cannabis business for activities other than cannabis cultivation or manufacturing.
B. Twenty- five dollars for each square foot or fractional part thereof of cannabis cultivation space.
C. One dollar for each gram of cannabis concentrate produced or manufactured.
D. One dollar for each unit of cannabis- infused product other than cannabis concentrate produced or manufactured and packaged or intended for individual sale.

Beginning July 1, 2017 and each July 1 thereafter, the amounts in paragraphs B, C, and D of this section shall be automatically adjusted based on the average percentage change in the Consumer Price Index for " all urban consumers" in the Los Angeles- Anaheim- Riverside area for the calendar year which ends in the previous fiscal year.

Ordinance 787 (Measure P) continues to authorize the City Council to set the taxes on medial cannabis at lower rates than what was approved by the voters, and to establish exemptions, incentives, or other reductions. On April 26, 2017, the City Council approved Resolution 2017-13 lowering the Cannabis Tax Rates Pursuant to Section 3.48.040 of the Cathedral City Municipal Code.

Resolution 2017-13 was approved on April 26, 2017 lowering the Cannabis Tax Rates, pursuant to Section 3.48.040 of the Cathedral City Municipal Code, as follows:

A. Ten cents for each one dollar of gross receipts or fractional part thereof received by a dispensary or by any other cannabis business for activities other than cannabis cultivation or manufacturing.
B. Fifteen dollars for each square foot or fractional part thereof of cannabis cultivation space.
C. Forty cents for each gram of cannabis concentrate produced or manufactured.
D. Forty cents for each unit of cannabis- infused product other than cannabis concentrate produced or manufactured and packaged or intended for individual sale.

Below is the Ordinance and Resolution imposing and setting the tax rates for cannabis businesses: